30Jun15

Construction of the Chinese section of the China-Russia East-Route Natural Gas
Pipeline began on Monday, further boosting energy cooperation between the two
countries, analysts said.

The Chinese section of the 3,968-kilometer east-route natural gas pipeline
originates in northeast China's Heilongjiang Province and terminates in Shanghai
in the east.

It is the largest China-Russia cooperation project and is conducive to diversifying
both countries' energy strategy and guaranteeing energy security, Chinese Vice
Premier Zhang Gaoli said at the construction commencement ceremony.

The Russian part of the east-route pipeline began construction in eastern Siberia
last September. Negotiations on details for a proposed western route are still
underway.

"The construction progress of the east route of the pipeline is of great strategic
significance. It lifts China-Russia mutual trust and cooperation to a new height,"
said Professor Liu Yijun with China University of Petroleum.

China National Petroleum Corp (CNPC) and Russian gas giant Gazprom signed a
deal for the East-Route Gas Project on May 21, 2014. The 30-year contract will
see the east-route pipeline begin providing China with 38 billion cubic meters of
natural gas annually from 2018.

Under the bilateral agreement, Russia will export 70 billion cubic meters of
natural gas to China every year upon completion of both the east- and
west-route gas pipelines.

Strengthening energy cooperation is of great significance to safeguarding the
two countries' energy security, said Zhou Dadi, vice director of the China Energy
Research Society.

Russia's energy export to Europe is under great pressure due to the impact of
the Ukraine crisis, making it look to the east for a solution, said Feng.

To reduce its reliance on coal and combat pollution, China also needs to import
more natural gas, he added.

The gas project is a win-win deal for both countries, said Feng Yujun, head of
the Russia Research Institute of China Institutes of Contemporary International
Relations.

"The pipeline will provide secure and reliable clean energy for China's economic
development and a long-term stable market for the rich natural gas resources in
Russia," he said.

The pipeline is also of great significance for the rejuvenation of the traditional
industrial base in northeast China and Russia's development of the Far East,
Feng added.

Aside from natural gas, the two countries should fully utilize the their
complementarity advantages to expand all-round cooperation in oil, nuclear
energy, coal and electricity.

[Source: Xinhua, Beijing, 30Jun15]

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